The present invention relates to a method and system for training traders. More particularly, the present invention relates to a method and system that provides students the opportunity to gain valuable skills and experience in trading financial products.
The advent of high-speed networking technologies and the widespread adoption of trading platforms via personal computers, the Internet, wireless and handheld devices, etc., have brought about rapid change and development of the trading function in professional financial services institutions. Such changes include automation of back office operations (i.e. order processing, trade-clearing, etc.) and the creation of new financial instruments made possible with the increased capacity of robust mainframe and supercomputing information systems that model enormous amounts of data.
This widespread utilization of technology has caused traders to place a greater emphasis on strategic decision making, implementing such strategic changes substantially instantaneously from the terminal of a trading desk. Technology has become a fundamental component of the trading profession, and the ability of traders to leverage technology in obtaining, analyzing, synthesizing and reacting to a vast amount of information from a variety of sources is an important cornerstone of a trader's success.
Accordingly, the trading function at any financial institution requires a refined balance of technical know-how and real-world experience that can only be gained through active participation in a market-based financial exchange. While a formalized education might convey the requisite financial and technical skills needed to perform on the job, this method of education does not lend itself toward the latter task of gaining an intimate knowledge of market behavior and a polished acumen for financial transactions. This expertise is essential to the success of any trader and can only be gained through direct experience.
Known systems and methods for training financial traders traditionally include one in which knowledge is passed down directly from one generation of traders to the next through apprenticeships and in-house training programs at brokerage houses, brokers, dealers, broker-dealers and other financial services institutions. Through this method of apprenticeship and direct observation, aspiring traders are able to integrate the experience and expertise of veteran brokers into their own professional practices. This requirement is inconvenient and inefficient, however, in that it requires the presence of a licensed professional trader and, in most cases, individualized attention—resources unavailable in a traditional university learning environment.